Dalmia Bharat Sugar & Industries Limited (DBSIL) has reported a 7% year-on-year increase in total revenue for the second quarter of fiscal year 2026, reaching Rs. 989.00 crore. The company's financial results, released on November 4, 2025, show resilience in a challenging market environment and optimism for the upcoming sugarcane crop season.

Q2 FY26 Financial Highlights

• Total revenue stood at Rs. 989.00 crore, up 7% from the same quarter last year
• Sugar sales volume increased by 2% year-on-year to 1.80 lakh metric tonnes (LMT)
• Average sugar Net Sales Realization (NSR) improved by 4% to Rs. 39.91 per kg
• Distillery volume grew by 3% year-on-year to 4.02 crore litres

Half-Year Performance

For the first half of FY26, DBSIL reported:

• Total revenue of Rs. 1,930.00 crore, a 3% increase year-on-year
• Sugar sales volume of 3.20 LMT, down 6% compared to H1 FY25
• Average sugar NSR of Rs. 39.86 per kg, up 4% year-on-year
• Distillery volume growth of 12% to 9.17 crore litres

Segment-wise Performance

Outlook and Industry Dynamics

DBSIL management expressed optimism about the upcoming sugarcane crop, citing expectations of good rainfall. The company stated, "Present Sugarcane Crop outlook is promising basis predictions of above normal rainfall with optimal distribution."

However, the sugar industry faces challenges, including increased sugarcane prices in Uttar Pradesh, which have risen by Rs. 30.00 per quintal for the 2025-26 sugar season. This increase is expected to put pressure on the profitability of both sugar and distillery segments.

The company emphasized the need for timely policy decisions to support the industry, stating, "Early decisions on Sugar export, increase in MSP of Sugar and Ethanol prices will certainly help the industry to combat current margin pressures."

Ethanol Allocation

For the Ethanol Supply Year (ESY) 2025-26, the ethanol allocation stands at 1,050.00 crore litres against an offer of 1,776.00 crore litres, with grain-based ethanol comprising 72% of the mix.

Despite challenges, Dalmia Bharat Sugar & Industries Limited remains focused on building a resilient and sustainable future through strategic initiatives and technology-driven innovation. The company's diverse portfolio across sugar, distillery, and power segments positions it to navigate the evolving market landscape.

Investors and industry observers will be watching closely to see how DBSIL capitalizes on the anticipated healthy sugarcane crop and manages the impact of increased input costs in the coming quarters.

Dalmia Bharat Sugar & Industries Limited (DBSIL) has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, along with the completion of a significant corporate restructuring.

Demerger of Non-Core Businesses

The company has successfully completed the demerger of its non-core refractory and travel agency businesses into Dalmia Bharat Refractories Limited. The National Company Law Tribunal approved the scheme on September 12, 2025, with an appointed date of July 1, 2023. This strategic move is expected to allow DBSIL to focus more on its core sugar and distillery operations.

Financial Impact of Demerger

As a result of the demerger:

• Revenue from operations decreased by ₹1.99 crores for the quarter ended June 30, 2025
• Assets decreased by ₹189.03 crores
• Liabilities decreased by ₹35.16 crores as of the appointed date

Financial Highlights

While specific revenue and profit figures for Q2 2025 were not provided, the company's financial position includes:

• Inventories of ₹444.60 crores
• Cash and cash equivalents of ₹214.41 crores

Corporate Governance

The board meeting for approving these results was held on November 4, 2025. The financial results were approved after recommendation by the audit committee, demonstrating the company's commitment to proper corporate governance practices.

Outlook

The demerger of non-core businesses may allow Dalmia Bharat Sugar & Industries to streamline its operations and focus on its primary sugar and distillery segments. Investors and analysts will be keenly watching how this restructuring impacts the company's performance in the coming quarters.

It's important to note that without specific comparative figures for the current quarter, it's challenging to assess the company's year-over-year performance or provide detailed analysis of revenue growth and profitability changes.

Stakeholders should look forward to more detailed disclosures and management commentary to better understand the company's strategic direction and financial health post-demerger.